Vodafone is proposing an industry Mobile Termination Rate (MTR) solution that would result in lower New Zealand rates than those in the United Kingdom and avoid the need for regulation.

Vodafone regulatory manger Hayden Glass says the initiative would lead to real retail price reductions for fixed calls to mobiles and offers an immediate benefit for customers and would be preferable to regulation, which would have no impact for at least 12 months.

Covec economist John Small says British telecommunications regulator OfCom's research shows the Vodafone proposal would deliver greater benefits to the public than proposed regulation.